Hewlett-Packard, like many other tech companies, has been faced with hard decisions and the need to restructure parts of the company. In 2012, HP began to put together a restructuring plan that would go into effect over the coming years. Having already reduced its workforce by 24,600, the company now says the total number of employees cut will reach 34,000 by the end of 2014.
This layoff count is 5,000 higher than what HP had originally expected it would need in order to meet financial goals. The increase was confirmed in the company's 10-K filing with the Securities and Exchange Commission, which was made public Tuesday.
More than 10 Percent
HP originally projected 27,000 layoffs for its restructuring; then, in September, that number was bumped to 29,000. Now that we are finally entering HP's big restructuring year, the layoff count is once again rising to 34,000, a number that accounts for more than 10 percent of HP's employees.
The numbers in the SEC filing came as no surprise, with HP Chief Financial Officer Cathie Lesjak discussing similar numbers during an October analysts call.
"Let's start with the restructuring program," Lesjak said at the time. "Our restructuring program is really on track. At the end of fiscal '13, on a program to-date basis, roughly 24,600 people exited under the program. So that's just under 13,000 in fiscal '13. As we talked about Security Analyst Meeting, our current plan is to end -- at the end of '14 at the high-end of our range, so 29,000 plus 15 percent, so somewhere between 33,000 and 34,000 people."
The Last Massive Change
Even though the 34,000 layoffs is a bad sign for HP and for the employees themselves, HP CEO Meg Whitman has already issued assurances that once fiscal 2014 is over, her company will not be going through more massive changes.
Outside of the corporate changes taking place within HP, the company has recently been making headlines as a result of its new products, namely the HP Chromebook 11. These consumer devices are part of the company's restructuring process which will hopefully turn HP into a more manageable consumer electronics company. Unlike , which is changing many parts of its business strategy, HP is lucky in that it is only forced to find ways to cut costs as it regains prominence in the industry.